Smart Ways for NZ Business Owners to Tackle Rising Cost of Living

Whether you’re refilling your petrol tank or paying for groceries, the cost of living in New Zealand is something all Kiwis are noticing. With New Zealand inflation continuing to affect essentials and daily expenses, both households and Kiwi businesses are feeling the pressure. Rising costs can squeeze margins and reduce spending power — but with the right strategies, it’s still possible to protect your income and move forward with confidence.

Here are some practical ways New Zealand business owners and families can manage rising costs, increase income, and invest for a stronger financial future.

1. Look for Ways to Increase Your Income

• Improve your business’s profitability. Even small changes to pricing, customer engagement, or processes can make a big impact. (Talk to us about profit improvement strategies tailored for Kiwi businesses.)

• Ask for a pay rise or explore new income streams aligned with your strengths.

• Take in a boarder or flatmate to offset housing expenses.

• Sell unused items online — it clears space and boosts your savings.

2. Cut Costs Where You Can

• Cook more meals at home and treat dining out as an occasional luxury.

• Set a budget and track your expenses. Tools like Calxa and Budget Consolidator are great options for business budgeting that integrate directly with Xero. Otherwise, we can help set up and monitor your budgets for you.

• Reduce meat consumption with a few plant-based meals each week — it’s good for your wallet and your health.

• Use public transport, carpool, or walk when you can.

• Cancel unused credit cards or ‘buy now, pay later’ accounts that stretch your finances.

• Review regular expenses like utilities, insurance, and subscriptions — look for better deals or cut back where possible.

3. Invest in Your Future

• Explore investments that tend to outpace inflation in New Zealand — such as diversified funds, shares, or property. You can read more about Geoff’s story and how he got his business through the GFC here.

• Start something new: a side hustle, product line, or business idea you’ve been thinking about.

• Build your financial skills with free tools, podcasts, and books from your local library. Strong money knowledge helps you do more with what you already have.

• For personal budgeting, Kiwi-made app PocketSmith offers great insights, cashflow forecasting, and live bank feeds — especially helpful for sole traders or small business owners managing both business and personal finance.

What’s Next?

Inflation in New Zealand is expected to hover around 2–3% this year. While it’s steadier than recent spikes, many are still feeling the pressure. But here’s the opportunity: by increasing your income by 4%, cutting back on non-essential costs, and making smart investments, you can outpace inflation and set yourself up for long-term stability.

Need Help Growing Your Business?

We’re here to help New Zealand small businesses navigate change and build resilience. Whether you’re improving cash flow, managing inflation, or looking for new growth strategies — our team of business advisors are ready to support you with practical advice and real-world experience.

Let’s talk about your next step.
The cost of living may be rising — but so can you.

Together we can achieve more.